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Experts predict one more hike in rates

THE Bank of England may not have finished raising interest rates despite its “dovish” inflation report last week and its prediction of falling house prices, analysts say. Most believe the monetary policy committee may raise rates once more next year, writes David Smith.

A survey by Ideaglobal.com, the financial research company, shows that 63% of analysts think the next move in the base rate will be up, against 37% who believe it will be down.

This is despite the expectation that minutes of the MPC’s November meeting, to be published on Wednesday, will show a unanimous 9-0 vote in favour of holding the base rate at 4.75%. The Bank last raised the rate in August.

Analysts cited upward pressures on inflation, notably figures last week showing industry’s output prices rising at their fastest rate for nine years, as the strongest reason for not calling the peak in interest rates yet.